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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2025

 

 

Ponce Financial Group, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

001-41255

87-1893965

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

2244 Westchester Avenue

 

Bronx, New York

 

10462

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (718) 931-9000

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, par value $0.01 per share

 

PDLB

 

The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02 Results of Operations and Financial Condition.

On October 24, 2025, Ponce Financial Group, Inc. (the "Company"), the holding company for Ponce Bank, N.A. ("Ponce Bank" or the "Bank"), issued a press release announcing its financial results with respect to its third quarter ended September 30, 2025. The Company’s press release is included as Exhibit 99.1 to this report.

 

The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.

Item 7.01 Regulation FD Disclosure.The Company is scheduled to make presentations to current and prospective investors after October 24, 2025. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which Ponce Financial Group, Inc. will make available at these presentations and will post on its website at www.poncebank.com. This report is being furnished to the SEC and shall not be deemed "filed" for any purpose.Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

Exhibit Number

Description

99.1

Press release dated October 24, 2025

99.2

 

Presentation of Ponce Financial Group

104

Cover Page Interactive Data File (embedded within the Inline XBRL)

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Ponce Financial Group, Inc.

 

 

 

 

Date:

October 24, 2025

By:

/s/ Carlos P. Naudon

 

 

 

Carlos P. Naudon
President and Chief Executive Officer

 

EX-99.1 2 pdlb-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

Ponce Financial Group, Inc. Reports Third Quarter 2025 Results

 

NEW YORK, October 24, 2025 - Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank, N.A. (the “Bank”), today announced results for the third quarter of 2025.

Third Quarter 2025 Highlights (Compared to Prior Periods):

•
Net income available to common stockholders was $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025, as compared to net income available to common stockholders of $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025 and net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024. Total net income for the three months ended September 30, 2025 was $6.5 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended September 30, 2025.
•
Included in the $6.2 million of net income available to common stockholders for the third quarter of 2025 results is $46.8 million in interest and dividend income and $1.5 million in non-interest income, offset by $21.6 million in interest expense, $16.6 million in non-interest expense, $2.3 million in provision for income taxes, $1.5 million in provision for credit losses and $0.3 million in dividends on preferred shares.
•
Net interest income of $25.2 million for the third quarter of 2025 increased $0.8 million, or 3.37%, from the prior quarter and increased $6.2 million, or 32.72%, from the same quarter last year.
•
Net interest margin was 3.30% for the third quarter of 2025, versus 3.27% for the prior quarter and 2.65% for the same quarter last year.

 

Nine Months 2025 Highlights (Compared to 2024):

•
Net income available to common stockholders was $17.7 million, or $0.77 per diluted share for the nine months ended September 30, 2025, as compared to net income available to common stockholders of $7.7 million, or $0.34 per diluted share for the nine months ended September 30, 2024. Total net income for the nine months ended September 30, 2025 was $18.6 million. The Company paid dividends of $0.8 million on its preferred stock during the nine months ended September 30, 2025.
•
Net interest income for the nine months ended September 30, 2025 was $71.9 million, an increase of $16.1 million, or 28.93%, compared to $55.8 million for the nine months ended September 30, 2024.
•
Non-interest income for the nine months ended September 30, 2025 was $5.9 million, an increase of $0.8 million, or 15.97%, from $5.1 million for the nine months ended September 30, 2024.
•
Non-interest expense for the nine months ended September 30, 2025 was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024.
•
Cash and equivalents were $146.6 million as of September 30, 2025, an increase of $6.7 million, or 4.82%, from $139.8 million as of December 31, 2024.
•
Securities totaled $379.9 million as of September 30, 2025, a decrease of $93.0 million, or 19.66%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments, the call of three available-for-sale securities in the total amount of $7.0 million and the maturity/call of three held-for-sale securities in the amount of $50.0 million.
•
Net loans receivable were $2.49 billion as of September 30, 2025, an increase of $203.4 million, or 8.90%, from $2.29 billion as of December 31, 2024.
•
Deposits were $2.06 billion as of September 30, 2025, an increase of $167.9 million, or 8.86%, from $1.90 billion as of December 31, 2024.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “In these uncertain times, we continue to execute on our long-term strategy of increasing margin through yield improvement and controlled cost of funds and operating expenses. We are very pleased with the results. We note our incremental profitability year-on-year and the consistency of our earnings. Our diluted earnings per share of $0.77 for the nine months ended September 30, 2025, more than doubled from the same period last year, driven by incremental net interest and non-interest income, achieved while keeping non-interest expenses almost flat. Our net interest margin this quarter increased by 3 basis points compared to the prior quarter, reflecting our decreasing funding costs.

1

 

We were also busy working on the future and opened a new branch in the Inwood neighborhood of Manhattan and modernized our charter, becoming both a financial holding company and a bank holding company while Ponce Bank converted to a national bank. These developments should enhance our funding sources and level our playing fields."

Executive Chairman’s Comment

 

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program. Our strong level of loan originations from April 2025 to September 2025 ensures that our dividend yield will continue at the 0.50% level in the next dividend period starting in 2026. Also, we’re mindful of our percentage of deep impact lending, as we need to be at 60% or above for 16 quarters cumulatively, as a condition to buy the preferred stock back. After 13 quarters, including the quarter ended September 30, 2025, we are at 81% deep impact lending.”

 

The table below indicate the Key Metrics at or for the three months ended:

 

 

At or for the Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

0.82

%

 

 

0.79

%

 

 

0.77

%

 

 

0.38

%

 

 

0.33

%

Return on common equity (1)

 

8.10

%

 

 

7.88

%

 

 

7.97

%

 

 

3.76

%

 

 

3.06

%

Net interest margin (1) (2)

 

3.30

%

 

 

3.27

%

 

 

2.98

%

 

 

2.80

%

 

 

2.65

%

Non-interest expense to average assets (1)

 

2.10

%

 

 

2.18

%

 

 

2.19

%

 

 

2.25

%

 

 

2.19

%

Efficiency ratio (3)

 

62.15

%

 

 

63.69

%

 

 

68.70

%

 

 

75.63

%

 

 

80.87

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital to risk-weighted assets (Ponce Financial Group)

 

24.08

%

 

 

22.65

%

 

 

22.84

%

 

 

22.98

%

 

 

22.87

%

Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)

 

13.39

%

 

 

12.49

%

 

 

12.51

%

 

 

12.44

%

 

 

12.28

%

Tier 1 capital to total assets (Ponce Financial Group)

 

17.33

%

 

 

17.13

%

 

 

16.84

%

 

 

17.70

%

 

 

17.81

%

Total capital to risk-weighted assets (Bank only)

 

21.79

%

 

 

21.22

%

 

 

21.38

%

 

 

21.47

%

 

 

21.61

%

Common equity Tier 1 capital to risk-weighted assets (Bank only)

 

20.66

%

 

 

20.15

%

 

 

20.35

%

 

 

20.40

%

 

 

20.45

%

Tier 1 capital to total assets (Bank only)

 

16.08

%

 

 

15.99

%

 

 

15.61

%

 

 

15.81

%

 

 

16.19

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans as a percentage of total loans

 

0.98

%

 

 

0.97

%

 

 

0.96

%

 

 

0.97

%

 

 

1.09

%

Allowance for credit losses on loans as a percentage of nonperforming loans

 

88.88

%

 

 

101.01

%

 

 

84.15

%

 

 

82.29

%

 

 

139.52

%

Net (charge-offs) recoveries to average outstanding loans (1)

 

(0.03

%)

 

 

(0.04

%)

 

 

(0.04

%)

 

 

(0.45

%)

 

 

(0.17

%)

Non-performing loans as a percentage of total assets

 

0.88

%

 

 

0.76

%

 

 

0.88

%

 

 

0.90

%

 

 

0.57

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of offices

 

18

 

 

 

17

 

 

 

18

 

 

 

19

 

 

 

19

 

Number of full-time equivalent employees

 

209

 

 

 

206

 

 

 

211

 

 

 

218

 

 

 

228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Annualized where appropriate.
(2)
Net interest margin represents net interest income divided by average total interest-earning assets.
(3)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

 

 

2

 

Summary of Results of Operations

 

Net income for the three months ended September 30, 2025 was $6.5 million compared to net income of $6.1 million for the three months ended June 30, 2025 and net income of $2.4 million for the three months ended September 30, 2024.

 

The $0.4 million increase of net income for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 was attributed mainly to an increase of $0.8 million in net interest income and decreases of $0.3 million in provision for credit losses and $0.3 million in non-interest expense, offset by a decrease of $0.6 million in non-interest income and an increase of $0.4 million in provision for income taxes.

 

The $4.1 million increase of net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was largely due to increases of $6.2 million in net interest income and $0.3 million in non-interest income, offset by increases of $1.6 million in provision for income taxes and $0.8 million in provision for credit losses while remain flat on non-interest expense

 

Net income for the nine months ended September 30, 2025 was $18.6 million compared to net income of $8.0 million for the nine months ended September 30, 2024. The $10.5 million increase of net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was attributed mainly to increases of $16.1 million in net interest income and $0.8 million in non-interest income, partially offset by increases of $3.1 million in provision for credit losses, $2.9 million in provision for income taxes and $0.4 million in non-interest expense.

 

 

Net Interest Income and Net Interest Margin

 

Net interest income for the three months ended September 30, 2025, increased $0.8 million, or 3.37%, to $25.2 million compared to $24.4 million for the three months ended June 30, 2025 and increased $6.2 million, or 32.72%, compared to $19.0 million for the three months ended September 30, 2024.

 

The $0.8 million increase in net interest income from the three months ended June 30, 2025 was attributable to an increase of $1.0 million in total interest and dividend income, offset by an increase of $0.2 million in total interest expense. The $6.2 million increase in net interest income from the three months ended September 30, 2024 was attributable to an increase of $5.6 million in total interest and dividend income and a decrease of $0.7 million in total interest expense.

 

Net interest income for the nine months ended September 30, 2025, increased $16.1 million, or 28.93%, to $71.9 million compared to $55.8 million for the nine months ended September 30, 2024. The $16.1 million increase in net interest income was attributable to an increase of $17.0 million in total interest and dividend income, offset by an increase of $0.8 million in total interest expense.

 

Net interest margin was 3.30% for the three months ended September 30, 2025 compared to 3.27% for the prior quarter, an increase of 3bps and 2.65% for the same period last year, an increase of 65bps.

 

Net interest margin was 3.18% for the nine months ended September 30, 2025 compared to 2.66% for the nine months ended September 30, 2024, an increase of 52bps.

 

Non-interest Income

 

Non-interest income for the three months ended September 30, 2025, was $1.5 million, a decrease of $0.6 million, or 27.57%, compared to $2.1 million for the three months ended June 30, 2025 and an increase of $0.3 million, or 29.63%, compared to $1.2 million for the three months ended September 30, 2024.

The $0.6 million decrease in non-interest income from the three months ended June 30, 2025 was largely attributable to decreases of

$0.5 million in other non-interest income attributable to the Bank's investment in Oaktree SBIC Fund, L.P. ("Oaktree") as a result of a loss from Oaktree's investment and $0.1 million in late and prepayment charges.

The $0.3 million increase in non-interest income from the three months ended September 30, 2024 was largely attributable to increases of $0.4 million in grant income and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.4 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment.

3

 

 

Non-interest income for the nine months ended September 30, 2025, was $5.9 million, an increase of $0.8 million, or 15.97%, compared to $5.1 million for the nine months ended September 30, 2024. The $0.8 million increase in non-interest income was largely attributable to increases of $0.9 million in grant income, $0.8 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, partially offset by decreases of $1.0 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment and $0.3 million in income on the sale of mortgage loans.

 

 

Non-interest Expense

 

Non-interest expense for the three months ended September 30, 2025 was $16.6 million, a decrease of $0.3 million, or 1.49%, compared to $16.9 million for the three months ended June 30, 2025 and remained flat at $16.6 million when compared to the three months ended September 30, 2024.

 

The $0.3 million decrease in non-interest expense from the three months ended June 30, 2025 was mainly attributable to decreases of $0.3 million in federal deposit insurance and regulatory assessment, $0.2 million in other non-interest expense, partially offset by an increase of $0.2 million in compensation and benefits.

 

Non-interest expense for the nine months ended September 30, 2025, was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024. The $0.4 million increase in non-interest expense was mainly attributable to increases of $0.7 million in occupancy and equipment, $0.4 million in data processing expenses and $0.4 million in other operating expense, partially offset by decreases of $1.2 million in direct loan expenses and $0.3 million in professional fees.

 

 

Credit Quality:

 

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $32.4 million at September 30, 2025 compared to $28.5 million at June 30, 2025 and $22.0 million at September 30, 2024.

 

During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion and $0.5 million charged on the unfunded portion on loans. During the three months ended June 30, 2025, a credit loss provision of $1.6 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.3 million charged on the unfunded portion on loans. During the three months ended September 30, 2024, a credit loss provision of $0.5 million on loans was recorded, consisting of $0.8 million charged on the funded portion on loans and a benefit of $0.3 million on the unfunded portion on loans.

 

During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion and a benefit of $0.2 million on the unfunded portion on loans. During the nine months ended September 30, 2024, a credit loss benefit of $0.2 million on loans was recorded, consisting of $0.4 million charged on the funded portion on loans and a benefit of $0.6 million on unfunded portion on loans.

 

Balance Sheet Summary

 

Total assets increased $117.1 million, or 3.85%, to $3.16 billion as of September 30, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $203.4 million in net loans receivable, $8.1 million in other assets, $6.7 million in cash and cash equivalents, $1.1 million in accrued interest receivable and $0.3 million in deferred tax asset, partially offset by decreases of $82.8 million in held-to-maturity securities, $10.1 million in available-for-sale securities, $4.9 million in mortgage loans held for sale, $3.2 million in Federal Home Loan Bank of New York stock, $0.8 million in right of use asset and $0.7 million in premises and equipment, net.

 

Total liabilities increased $92.8 million, or 3.66%, to $2.63 billion as of September 30, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to increases of $164.0 million in deposits, $3.9 million in advance payments by borrowers for taxes and insurance and $0.7 million in accrued interest payable, partially offset by decreases of $75.0 million in borrowings and $0.7 million in operating lease liabilities.

Total stockholders’ equity increased $24.3 million, or 4.81%, to $529.8 million as of September 30, 2025, from $505.5 million as of December 31, 2024. The $24.3 million increase in stockholders’ equity was largely attributable to $18.6 million in net income, $3.7 million in other comprehensive income, $1.4 million impact to additional paid in capital as a result of share-based compensation, $1.4 million from release of ESOP shares and $0.1 million from exercise of stock options, offset by $0.8 million in dividends on preferred shares.

4

 

 

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A.. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank. N.A. also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, Federal Home Loan Bank stock and Federal Reserve Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.’s market area; Ponce Bank, N.A.’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

5

 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

29,296

 

 

$

35,767

 

 

$

32,113

 

 

$

35,478

 

 

$

32,061

 

Interest-bearing deposits

 

117,283

 

 

 

90,872

 

 

 

97,780

 

 

 

104,361

 

 

 

123,751

 

Total cash and cash equivalents

 

146,579

 

 

 

126,639

 

 

 

129,893

 

 

 

139,839

 

 

 

155,812

 

Available-for-sale securities, at fair value

 

94,822

 

 

 

96,562

 

 

 

103,570

 

 

 

104,970

 

 

 

111,005

 

Held-to-maturity securities, at amortized cost

 

285,125

 

 

 

336,879

 

 

 

358,024

 

 

 

367,938

 

 

 

403,736

 

Placement with banks

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

Mortgage loans held for sale, at fair value

 

5,794

 

 

 

5,703

 

 

 

8,567

 

 

 

10,736

 

 

 

9,566

 

Loans receivable, net

 

2,490,046

 

 

 

2,458,712

 

 

 

2,370,931

 

 

 

2,286,599

 

 

 

2,180,331

 

Accrued interest receivable

 

18,903

 

 

 

19,126

 

 

 

19,008

 

 

 

17,771

 

 

 

16,890

 

Premises and equipment, net

 

16,129

 

 

 

16,067

 

 

 

16,417

 

 

 

16,794

 

 

 

16,843

 

Right of use assets

 

28,295

 

 

 

28,806

 

 

 

29,496

 

 

 

29,093

 

 

 

29,785

 

Federal Home Loan Bank of New York stock (FHLBNY), at cost

 

25,945

 

 

 

26,620

 

 

 

25,807

 

 

 

29,182

 

 

 

28,515

 

Deferred tax assets

 

12,402

 

 

 

12,143

 

 

 

11,629

 

 

 

12,074

 

 

 

11,845

 

Other assets

 

32,790

 

 

 

26,363

 

 

 

16,245

 

 

 

24,693

 

 

 

51,392

 

Total assets

$

3,157,079

 

 

$

3,153,869

 

 

$

3,089,836

 

 

$

3,039,938

 

 

$

3,015,969

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits (1)

$

2,063,081

 

 

$

2,053,151

 

 

$

2,017,848

 

 

$

1,895,213

 

 

$

1,884,056

 

Operating lease liabilities

 

30,028

 

 

 

30,501

 

 

 

31,126

 

 

 

30,696

 

 

 

31,343

 

Accrued interest payable

 

4,372

 

 

 

4,161

 

 

 

4,628

 

 

 

3,712

 

 

 

2,918

 

Borrowings

 

521,100

 

 

 

536,100

 

 

 

521,100

 

 

 

596,100

 

 

 

580,421

 

Other liabilities

 

8,663

 

 

 

8,868

 

 

 

1,248

 

 

 

8,717

 

 

 

12,642

 

Total liabilities

 

2,627,244

 

 

 

2,632,781

 

 

 

2,575,950

 

 

 

2,534,438

 

 

 

2,511,380

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 100,000,000 shares authorized

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

225,000

 

Common stock, $0.01 par value; 200,000,000 shares authorized

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

Treasury stock, at cost

 

(7,270

)

 

 

(7,404

)

 

 

(7,641

)

 

 

(7,707

)

 

 

(9,445

)

Additional paid-in-capital

 

208,909

 

 

 

208,275

 

 

 

207,888

 

 

 

207,319

 

 

 

208,478

 

Retained earnings

 

125,477

 

 

 

119,250

 

 

 

113,432

 

 

 

107,754

 

 

 

105,103

 

Accumulated other comprehensive loss

 

(11,586

)

 

 

(13,047

)

 

 

(13,515

)

 

 

(15,297

)

 

 

(12,686

)

Unearned compensation ─ ESOP

 

(10,944

)

 

 

(11,235

)

 

 

(11,527

)

 

 

(11,818

)

 

 

(12,110

)

Total stockholders' equity

 

529,835

 

 

 

521,088

 

 

 

513,886

 

 

 

505,500

 

 

 

504,589

 

Total liabilities and stockholders' equity

$

3,157,079

 

 

$

3,153,869

 

 

$

3,089,836

 

 

$

3,039,938

 

 

$

3,015,969

 

 

 

(1) As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.

 

6

 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

$

41,486

 

 

$

40,291

 

 

$

37,136

 

 

$

35,622

 

 

$

32,945

 

Interest on deposits due from banks

 

978

 

 

 

807

 

 

 

1,668

 

 

 

1,783

 

 

 

2,430

 

Interest and dividend on securities and FHLBNY stock

 

4,383

 

 

 

4,762

 

 

 

5,193

 

 

 

5,481

 

 

 

5,918

 

Total interest and dividend income

 

46,847

 

 

 

45,860

 

 

 

43,997

 

 

 

42,886

 

 

 

41,293

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

6,553

 

 

 

7,382

 

 

 

7,754

 

 

 

8,104

 

 

 

6,926

 

Interest on other deposits

 

9,996

 

 

 

9,058

 

 

 

8,554

 

 

 

8,476

 

 

 

8,519

 

Interest on borrowings

 

5,050

 

 

 

4,994

 

 

 

5,486

 

 

 

5,576

 

 

 

6,825

 

Total interest expense

 

21,599

 

 

 

21,434

 

 

 

21,794

 

 

 

22,156

 

 

 

22,270

 

Net interest income

 

25,248

 

 

 

24,426

 

 

 

22,203

 

 

 

20,730

 

 

 

19,023

 

Provision (benefit) for credit losses (1)

 

1,364

 

 

 

1,626

 

 

 

(285

)

 

 

897

 

 

 

537

 

Net interest income after provision (benefit) for credit losses

 

23,884

 

 

 

22,800

 

 

 

22,488

 

 

 

19,833

 

 

 

18,486

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

539

 

 

 

511

 

 

 

525

 

 

 

500

 

 

 

508

 

Brokerage commissions

 

8

 

 

 

—

 

 

 

4

 

 

 

44

 

 

 

—

 

Late and prepayment charges

 

385

 

 

 

530

 

 

 

697

 

 

 

318

 

 

 

77

 

Income on sale of mortgage loans

 

166

 

 

 

169

 

 

 

148

 

 

 

254

 

 

 

218

 

Income on sale of SBA loans

 

—

 

 

 

—

 

 

 

404

 

 

 

148

 

 

 

—

 

Grant income

 

429

 

 

 

428

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

(35

)

 

 

422

 

 

 

603

 

 

 

833

 

 

 

348

 

Total non-interest income

 

1,492

 

 

 

2,060

 

 

 

2,381

 

 

 

2,097

 

 

 

1,151

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

7,868

 

 

 

7,627

 

 

 

7,780

 

 

 

7,668

 

 

 

7,674

 

Occupancy and equipment

 

3,934

 

 

 

3,907

 

 

 

3,913

 

 

 

3,863

 

 

 

3,786

 

Data processing expenses

 

1,296

 

 

 

1,188

 

 

 

1,152

 

 

 

1,143

 

 

 

1,099

 

Direct loan expenses

 

155

 

 

 

241

 

 

 

388

 

 

 

617

 

 

 

573

 

Insurance and surety bond premiums

 

318

 

 

 

297

 

 

 

315

 

 

 

293

 

 

 

292

 

Office supplies, telephone and postage

 

170

 

 

 

174

 

 

 

170

 

 

 

294

 

 

 

222

 

Professional fees

 

1,409

 

 

 

1,367

 

 

 

1,364

 

 

 

1,703

 

 

 

1,351

 

Microloans recoveries

 

—

 

 

 

—

 

 

 

—

 

 

 

(29

)

 

 

(54

)

Marketing and promotional expenses

 

184

 

 

 

266

 

 

 

83

 

 

 

289

 

 

 

180

 

Federal deposit insurance and regulatory assessment (2)

 

266

 

 

 

546

 

 

 

461

 

 

 

418

 

 

 

392

 

Other operating expenses (2)

 

1,018

 

 

 

1,256

 

 

 

1,262

 

 

 

1,206

 

 

 

1,051

 

Total non-interest expense (1)

 

16,618

 

 

 

16,869

 

 

 

16,888

 

 

 

17,465

 

 

 

16,566

 

Income before income taxes

 

8,758

 

 

 

7,991

 

 

 

7,981

 

 

 

4,465

 

 

 

3,071

 

Provision for income taxes

 

2,250

 

 

 

1,891

 

 

 

2,022

 

 

 

1,532

 

 

 

638

 

Net income

$

6,508

 

 

$

6,100

 

 

$

5,959

 

 

$

2,933

 

 

$

2,433

 

Dividends on preferred shares

 

281

 

 

 

282

 

 

 

281

 

 

 

282

 

 

 

281

 

Net income available to common stockholders

$

6,227

 

 

$

5,818

 

 

$

5,678

 

 

$

2,651

 

 

$

2,152

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.27

 

 

$

0.26

 

 

$

0.25

 

 

$

0.12

 

 

$

0.10

 

Diluted

$

0.27

 

 

$

0.25

 

 

$

0.25

 

 

$

0.12

 

 

$

0.10

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

22,766,195

 

 

 

22,716,615

 

 

 

22,662,916

 

 

 

22,528,160

 

 

 

22,446,009

 

Diluted

 

23,135,448

 

 

 

22,947,769

 

 

 

22,876,740

 

 

 

22,807,644

 

 

 

22,612,028

 

 

(1) For the three months ended December 31, 2024, and September 30, 2024, benefit for contingencies in the amounts of $0.2 million and $0.3 million were reclassified from total non-interest expense to benefit for credit losses.

 

(2) For the three months ended September 30, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods.

7

 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

Variance $

 

 

Variance %

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

 

$

118,913

 

 

$

94,890

 

 

$

24,023

 

 

 

25.32

%

Interest on deposits due from banks

 

 

3,453

 

 

 

6,883

 

 

 

(3,430

)

 

 

(49.83

%)

Interest and dividend on securities and FHLBNY stock

 

 

14,338

 

 

 

17,978

 

 

 

(3,640

)

 

 

(20.25

%)

Total interest and dividend income

 

 

136,704

 

 

 

119,751

 

 

 

16,953

 

 

 

14.16

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

 

21,689

 

 

 

19,664

 

 

 

2,025

 

 

 

10.30

%

Interest on other deposits

 

 

27,608

 

 

 

22,448

 

 

 

5,160

 

 

 

22.99

%

Interest on borrowings

 

 

15,530

 

 

 

21,889

 

 

 

(6,359

)

 

 

(29.05

%)

Total interest expense

 

 

64,827

 

 

 

64,001

 

 

 

826

 

 

 

1.29

%

Net interest income

 

 

71,877

 

 

 

55,750

 

 

 

16,127

 

 

 

28.93

%

Provision (benefit) for credit losses

 

 

2,705

 

 

 

(346

)

 

 

3,051

 

 

 

(881.79

%)

Net interest income after provision (benefit) for credit losses

 

 

69,172

 

 

 

56,096

 

 

 

13,076

 

 

 

23.31

%

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

1,575

 

 

 

1,473

 

 

 

102

 

 

 

6.92

%

Brokerage commissions

 

 

12

 

 

 

17

 

 

 

(5

)

 

 

(29.41

%)

Late and prepayment charges

 

 

1,612

 

 

 

862

 

 

 

750

 

 

 

87.01

%

Income on sale of mortgage loans

 

 

483

 

 

 

794

 

 

 

(311

)

 

 

(39.17

%)

Income on sale of SBA loans

 

 

404

 

 

 

—

 

 

 

404

 

 

 

—

%

Grant income

 

 

857

 

 

 

—

 

 

 

857

 

 

 

—

%

Other

 

 

990

 

 

 

1,970

 

 

 

(980

)

 

 

(49.75

%)

Total non-interest income

 

 

5,933

 

 

 

5,116

 

 

 

817

 

 

 

15.97

%

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

23,275

 

 

 

23,242

 

 

 

33

 

 

 

0.14

%

Occupancy and equipment

 

 

11,754

 

 

 

11,017

 

 

 

737

 

 

 

6.69

%

Data processing expenses

 

 

3,636

 

 

 

3,239

 

 

 

397

 

 

 

12.26

%

Direct loan expenses

 

 

784

 

 

 

1,938

 

 

 

(1,154

)

 

 

(59.55

%)

Insurance and surety bond premiums

 

 

930

 

 

 

808

 

 

 

122

 

 

 

15.10

%

Office supplies, telephone and postage

 

 

514

 

 

 

704

 

 

 

(190

)

 

 

(26.99

%)

Professional fees

 

 

4,140

 

 

 

4,443

 

 

 

(303

)

 

 

(6.82

%)

Microloans recoveries

 

 

—

 

 

 

(172

)

 

 

172

 

 

 

(100.00

%)

Marketing and promotional expenses

 

 

533

 

 

 

425

 

 

 

108

 

 

 

25.41

%

Federal deposit insurance and regulatory assessments

 

 

1,273

 

 

 

1,209

 

 

 

64

 

 

 

5.29

%

Other operating expenses

 

 

3,536

 

 

 

3,139

 

 

 

397

 

 

 

12.65

%

Total non-interest expense

 

 

50,375

 

 

 

49,992

 

 

 

383

 

 

 

0.77

%

Income before income taxes

 

 

24,730

 

 

 

11,220

 

 

 

13,510

 

 

 

120.41

%

Provision for income taxes

 

 

6,163

 

 

 

3,181

 

 

 

2,982

 

 

 

93.74

%

Net income

 

$

18,567

 

 

$

8,039

 

 

$

10,528

 

 

 

130.96

%

Dividends on preferred shares

 

 

844

 

 

 

356

 

 

 

488

 

 

 

137.08

%

Net income available to common stockholders

 

$

17,723

 

 

$

7,683

 

 

$

10,040

 

 

 

130.68

%

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.78

 

 

$

0.34

 

 

$

0.44

 

 

 

129.41

%

Diluted

 

$

0.77

 

 

$

0.34

 

 

$

0.43

 

 

 

126.47

%

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,715,620

 

 

 

22,403,258

 

 

 

312,362

 

 

 

1.39

%

Diluted

 

 

22,992,655

 

 

 

22,466,178

 

 

 

526,477

 

 

 

2.34

%

 

 

8

 

Ponce Financial Group, Inc. and Subsidiaries

Loans Receivable excluding Mortgage Loans Held for Sale

 

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

(Dollars in thousands)

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor Owned

 

$

311,728

 

 

 

12.39

%

 

$

317,488

 

 

 

12.78

%

 

$

325,866

 

 

 

13.62

%

 

$

330,053

 

 

 

14.30

%

 

$

332,380

 

 

 

15.09

%

Owner-Occupied

 

 

132,874

 

 

 

5.28

%

 

 

134,862

 

 

 

5.43

%

 

 

137,676

 

 

 

5.75

%

 

 

142,363

 

 

 

6.17

%

 

 

145,065

 

 

 

6.59

%

Multifamily residential

 

 

688,574

 

 

 

27.39

%

 

 

693,670

 

 

 

27.96

%

 

 

675,541

 

 

 

28.24

%

 

 

670,159

 

 

 

29.04

%

 

 

678,029

 

 

 

30.78

%

Nonresidential properties

 

 

436,175

 

 

 

17.35

%

 

 

404,512

 

 

 

16.30

%

 

 

390,681

 

 

 

16.33

%

 

 

389,898

 

 

 

16.89

%

 

 

383,277

 

 

 

17.40

%

Construction and land

 

 

886,369

 

 

 

35.25

%

 

 

883,462

 

 

 

35.59

%

 

 

815,425

 

 

 

34.08

%

 

 

733,660

 

 

 

31.79

%

 

 

631,461

 

 

 

28.67

%

Total mortgage loans

 

 

2,455,720

 

 

 

97.66

%

 

 

2,433,994

 

 

 

98.06

%

 

 

2,345,189

 

 

 

98.02

%

 

 

2,266,133

 

 

 

98.19

%

 

 

2,170,212

 

 

 

98.53

%

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business loans

 

 

58,012

 

 

 

2.31

%

 

 

47,372

 

 

 

1.91

%

 

 

46,329

 

 

 

1.94

%

 

 

40,849

 

 

 

1.77

%

 

 

28,499

 

 

 

1.29

%

Consumer loans (1)

 

 

727

 

 

 

0.03

%

 

 

840

 

 

 

0.03

%

 

 

997

 

 

 

0.04

%

 

 

1,038

 

 

 

0.04

%

 

 

4,021

 

 

 

0.18

%

Total non-mortgage loans

 

 

58,739

 

 

 

2.34

%

 

 

48,212

 

 

 

1.94

%

 

 

47,326

 

 

 

1.98

%

 

 

41,887

 

 

 

1.81

%

 

 

32,520

 

 

 

1.47

%

Total loans, gross

 

 

2,514,459

 

 

 

100.00

%

 

 

2,482,206

 

 

 

100.00

%

 

 

2,392,515

 

 

 

100.00

%

 

 

2,308,020

 

 

 

100.00

%

 

 

2,202,732

 

 

 

100.00

%

Net deferred loan origination costs

 

 

351

 

 

 

 

 

 

606

 

 

 

 

 

 

1,390

 

 

 

 

 

 

1,081

 

 

 

 

 

 

1,565

 

 

 

 

Allowance for credit losses on loans

 

 

(24,764

)

 

 

 

 

 

(24,100

)

 

 

 

 

 

(22,974

)

 

 

 

 

 

(22,502

)

 

 

 

 

 

(23,966

)

 

 

 

Loans, net

 

$

2,490,046

 

 

 

 

 

$

2,458,712

 

 

 

 

 

$

2,370,931

 

 

 

 

 

$

2,286,599

 

 

 

 

 

$

2,180,331

 

 

 

 

 

(1)
As of September 30, 2024, consumer loans include $3.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

 

 

 

9

 

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

 

 

For the Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

(Dollars in thousands)

 

Allowance for credit losses on loans at beginning of the period

$

24,100

 

 

$

22,974

 

 

$

22,502

 

 

$

23,966

 

 

$

24,061

 

Provision for credit losses on loans

 

864

 

 

 

1,348

 

 

 

731

 

 

 

1,090

 

 

 

801

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

 

—

 

 

 

—

 

 

 

(38

)

 

 

—

 

 

 

—

 

Owner occupied

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Multifamily residences

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Nonresidential properties

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7

)

Construction and land

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

(200

)

 

 

(222

)

 

 

(222

)

 

 

(232

)

 

 

(450

)

Consumer

 

—

 

 

 

—

 

 

 

(3

)

 

 

(2,465

)

 

 

(634

)

Total charge-offs

 

(200

)

 

 

(222

)

 

 

(263

)

 

 

(2,697

)

 

 

(1,091

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

1

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

143

 

 

 

194

 

Total recoveries

 

—

 

 

 

—

 

 

 

4

 

 

 

143

 

 

 

195

 

Net (charge-offs) recoveries

 

(200

)

 

 

(222

)

 

 

(259

)

 

 

(2,554

)

 

 

(896

)

Allowance for credit losses on loans at end of the period

$

24,764

 

 

$

24,100

 

 

$

22,974

 

 

$

22,502

 

 

$

23,966

 

 

10

 

 

Ponce Financial Group, Inc. and Subsidiaries

Deposits

 

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Demand

 

$

192,595

 

 

 

9.34

%

 

$

197,671

 

 

 

9.63

%

 

$

212,139

 

 

 

10.51

%

 

$

169,178

 

 

 

8.93

%

 

$

182,737

 

 

 

9.71

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA accounts

 

 

75,051

 

 

 

3.64

%

 

 

63,626

 

 

 

3.10

%

 

 

74,430

 

 

 

3.69

%

 

 

62,616

 

 

 

3.30

%

 

 

71,445

 

 

 

3.79

%

Money market accounts

 

 

821,844

 

 

 

39.84

%

 

 

790,939

 

 

 

38.52

%

 

 

692,753

 

 

 

34.33

%

 

 

636,219

 

 

 

33.57

%

 

 

660,168

 

 

 

35.04

%

Reciprocal deposits

 

 

154,548

 

 

 

7.49

%

 

 

136,693

 

 

 

6.66

%

 

 

141,838

 

 

 

7.03

%

 

 

130,677

 

 

 

6.90

%

 

 

94,145

 

 

 

5.00

%

Savings accounts (1) (2)

 

 

117,401

 

 

 

5.69

%

 

 

113,701

 

 

 

5.54

%

 

 

119,023

 

 

 

5.90

%

 

 

116,219

 

 

 

6.13

%

 

 

122,674

 

 

 

6.51

%

Total NOW, money market, reciprocal and savings accounts

 

 

1,168,844

 

 

 

56.66

%

 

 

1,104,959

 

 

 

53.82

%

 

 

1,028,044

 

 

 

50.95

%

 

 

945,731

 

 

 

49.90

%

 

 

948,432

 

 

 

50.34

%

Certificates of deposit of $250K or more (1)

 

 

209,819

 

 

 

10.17

%

 

 

220,671

 

 

 

10.75

%

 

 

219,721

 

 

 

10.89

%

 

 

204,293

 

 

 

10.78

%

 

 

210,262

 

 

 

11.17

%

Brokered certificates of deposit (3)

 

 

67,952

 

 

 

3.29

%

 

 

69,531

 

 

 

3.39

%

 

 

84,531

 

 

 

4.19

%

 

 

94,531

 

 

 

4.99

%

 

 

94,531

 

 

 

5.02

%

Listing service deposits (3)

 

 

4,150

 

 

 

0.20

%

 

 

6,140

 

 

 

0.30

%

 

 

6,140

 

 

 

0.30

%

 

 

7,376

 

 

 

0.39

%

 

 

7,376

 

 

 

0.39

%

All other certificates of deposit less than $250K (1)

 

 

419,721

 

 

 

20.34

%

 

 

454,179

 

 

 

22.12

%

 

 

467,273

 

 

 

23.16

%

 

 

474,104

 

 

 

25.02

%

 

 

440,718

 

 

 

23.39

%

Total certificates of deposit

 

 

701,642

 

 

 

34.00

%

 

 

750,521

 

 

 

36.56

%

 

 

777,665

 

 

 

38.54

%

 

 

780,304

 

 

 

41.18

%

 

 

752,887

 

 

 

39.97

%

Total interest-bearing deposits

 

 

1,870,486

 

 

 

90.66

%

 

 

1,855,480

 

 

 

90.38

%

 

 

1,805,709

 

 

 

89.49

%

 

 

1,726,035

 

 

 

91.08

%

 

 

1,701,319

 

 

 

90.31

%

Total deposits

 

$

2,063,081

 

 

 

100.00

%

 

$

2,053,151

 

 

 

100.01

%

 

$

2,017,848

 

 

 

100.00

%

 

$

1,895,213

 

 

 

100.01

%

 

$

1,884,056

 

 

 

100.02

%

 

(1)
As of September 30, 2024, $36.2 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.
(2)
As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.
(3)
There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

11

 

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

 

 

As of Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

(Dollars in thousands)

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

2,527

 

 

$

1,859

 

 

$

1,052

 

 

$

436

 

 

$

436

 

Owner occupied

 

649

 

 

 

—

 

 

 

1,423

 

 

 

1,423

 

 

 

1,423

 

Multifamily residential

 

14,202

 

 

 

11,703

 

 

 

9,788

 

 

 

10,271

 

 

 

4,685

 

Nonresidential properties

 

—

 

 

 

405

 

 

 

—

 

 

 

—

 

 

 

824

 

Construction and land

 

8,907

 

 

 

8,907

 

 

 

14,159

 

 

 

14,158

 

 

 

8,907

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

880

 

 

 

276

 

 

 

170

 

 

 

343

 

 

 

180

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)

$

27,165

 

 

$

23,150

 

 

$

26,592

 

 

$

26,631

 

 

$

16,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing modifications to borrowers experiencing financial difficulty (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

284

 

 

$

284

 

 

$

279

 

 

$

279

 

 

$

278

 

Owner occupied

 

414

 

 

 

424

 

 

 

431

 

 

 

435

 

 

 

444

 

Multifamily residential

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Nonresidential properties

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction and land

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accruing modifications to borrowers experiencing financial difficulty (1)

 

698

 

 

 

708

 

 

 

710

 

 

 

714

 

 

 

722

 

Total non-performing assets (2)

$

27,863

 

 

$

23,858

 

 

$

27,302

 

 

$

27,345

 

 

$

17,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing modifications to borrowers experiencing financial difficulty (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

1,766

 

 

$

1,779

 

 

$

1,792

 

 

$

1,807

 

 

$

1,821

 

Owner occupied

 

1,959

 

 

 

2,012

 

 

 

2,038

 

 

 

2,062

 

 

 

2,116

 

Multifamily residential

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Nonresidential properties

 

629

 

 

 

655

 

 

 

644

 

 

 

652

 

 

 

672

 

Construction and land

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

196

 

 

 

203

 

 

 

209

 

 

 

215

 

 

 

222

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total accruing modifications to borrowers experiencing financial difficulty (1)

$

4,550

 

 

$

4,649

 

 

$

4,683

 

 

$

4,736

 

 

$

4,831

 

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)

$

32,413

 

 

$

28,507

 

 

$

31,985

 

 

$

32,081

 

 

$

22,008

 

Total non-performing assets to total assets

 

0.88

%

 

 

0.76

%

 

 

0.87

%

 

 

0.90

%

 

 

0.57

%

 

 

(1) Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

 

(2) Includes nonperforming mortgage loans held for sale.

12

 

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

 

 

For the Three Months Ended September 30,

 

2025

 

2024

 

Average

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

Outstanding

 

 

 

 

 

Average

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

(Dollars in thousands)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

2,499,268

 

 

$

41,486

 

 

6.59%

 

$

2,096,592

 

 

$

32,945

 

 

6.25%

Securities (3)

 

418,513

 

 

 

3,913

 

 

3.71%

 

 

548,708

 

 

 

5,324

 

 

3.86%

Other (4)

 

119,262

 

 

 

1,448

 

 

4.82%

 

 

210,057

 

 

 

3,024

 

 

5.73%

Total interest-earning assets

 

3,037,043

 

 

 

46,847

 

 

6.12%

 

 

2,855,357

 

 

 

41,293

 

 

5.75%

Non-interest-earning assets

 

96,095

 

 

 

 

 

 

 

 

107,153

 

 

 

 

 

 

Total assets

$

3,133,138

 

 

 

 

 

 

 

$

2,962,510

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

78,526

 

 

$

137

 

 

0.69%

 

$

74,690

 

 

$

174

 

 

0.93%

Money market

 

958,277

 

 

 

9,831

 

 

4.07%

 

 

711,385

 

 

 

8,318

 

 

4.65%

Savings (5)

 

119,159

 

 

 

28

 

 

0.09%

 

 

122,722

 

 

 

27

 

 

0.09%

Certificates of deposit

 

698,019

 

 

 

6,553

 

 

3.72%

 

 

655,562

 

 

 

6,926

 

 

4.20%

Total deposits

 

1,853,981

 

 

 

16,549

 

 

3.54%

 

 

1,564,359

 

 

 

15,445

 

 

3.93%

Borrowings

 

521,100

 

 

 

5,050

 

 

3.84%

 

 

660,312

 

 

 

6,825

 

 

4.11%

Total interest-bearing liabilities

 

2,375,081

 

 

 

21,599

 

 

3.61%

 

 

2,224,671

 

 

 

22,270

 

 

3.98%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

199,922

 

 

 

—

 

 

 

 

 

185,543

 

 

 

—

 

 

 

Other non-interest-bearing liabilities

 

31,406

 

 

 

—

 

 

 

 

 

49,702

 

 

 

—

 

 

 

Total non-interest-bearing liabilities

 

231,328

 

 

 

—

 

 

 

 

 

235,245

 

 

 

—

 

 

 

Total liabilities

 

2,606,409

 

 

 

21,599

 

 

 

 

 

2,459,916

 

 

 

22,270

 

 

 

Total equity

 

526,729

 

 

 

 

 

 

 

 

502,594

 

 

 

 

 

 

Total liabilities and total equity

$

3,133,138

 

 

 

 

 

3.61%

 

$

2,962,510

 

 

 

 

 

3.98%

Net interest income

 

 

 

$

25,248

 

 

 

 

 

 

 

$

19,023

 

 

 

Net interest rate spread (6)

 

 

 

 

 

 

2.51%

 

 

 

 

 

 

 

1.77%

Net interest-earning assets (7)

$

661,962

 

 

 

 

 

 

 

$

630,686

 

 

 

 

 

 

Net interest margin (8)

 

 

 

 

 

 

3.30%

 

 

 

 

 

 

 

2.65%

Average interest-earning assets to interest-bearing liabilities

 

 

 

 

 

 

127.87%

 

 

 

 

 

 

 

128.35%

 

 

(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)
For the three months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.2 million, were reclassified to Savings.
(6)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)
Net interest margin represents net interest income divided by average total interest-earning assets.

13

 

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

 

 

 

Nine Months Ended September 30,

 

 

2025

 

 

2024

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

 

Outstanding

 

 

 

 

 

Average

 

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

2,439,280

 

 

$

118,913

 

 

 

6.52

%

 

$

2,038,879

 

 

$

94,890

 

 

 

6.22

%

Securities (3)

 

445,130

 

 

 

12,680

 

 

 

3.81

%

 

 

562,451

 

 

 

16,429

 

 

 

3.90

%

Other (4)

 

135,600

 

 

 

5,111

 

 

 

5.04

%

 

 

196,668

 

 

 

8,432

 

 

 

5.73

%

Total interest-earning assets

 

3,020,010

 

 

 

136,704

 

 

 

6.05

%

 

 

2,797,998

 

 

 

119,751

 

 

 

5.72

%

Non-interest-earning assets

 

103,059

 

 

 

 

 

 

 

 

 

106,500

 

 

 

 

 

 

 

Total assets

$

3,123,069

 

 

 

 

 

 

 

 

$

2,904,498

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

73,034

 

 

$

352

 

 

 

0.64

%

 

$

76,817

 

 

$

543

 

 

 

0.94

%

Money market

 

884,115

 

 

 

27,172

 

 

 

4.11

%

 

 

618,725

 

 

 

21,819

 

 

 

4.71

%

Savings (5)

 

118,656

 

 

 

84

 

 

 

0.09

%

 

 

125,296

 

 

 

86

 

 

 

0.09

%

Certificates of deposit

 

754,531

 

 

 

21,689

 

 

 

3.84

%

 

 

640,369

 

 

 

19,664

 

 

 

4.10

%

Total deposits

 

1,830,336

 

 

 

49,297

 

 

 

3.60

%

 

 

1,461,207

 

 

 

42,112

 

 

 

3.85

%

Borrowings

 

536,851

 

 

 

15,530

 

 

 

3.87

%

 

 

703,775

 

 

 

21,889

 

 

 

4.15

%

Total interest-bearing liabilities

 

2,367,187

 

 

 

64,827

 

 

 

3.66

%

 

 

2,164,982

 

 

 

64,001

 

 

 

3.95

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

199,978

 

 

 

—

 

 

 

 

 

 

191,087

 

 

 

—

 

 

 

 

Other non-interest-bearing liabilities

 

37,206

 

 

 

—

 

 

 

 

 

 

51,061

 

 

 

—

 

 

 

 

Total non-interest-bearing liabilities

 

237,184

 

 

 

—

 

 

 

 

 

 

242,148

 

 

 

—

 

 

 

 

Total liabilities

 

2,604,371

 

 

 

64,827

 

 

 

 

 

 

2,407,130

 

 

 

64,001

 

 

 

 

Total equity

 

518,698

 

 

 

 

 

 

 

 

 

497,368

 

 

 

 

 

 

 

Total liabilities and total equity

$

3,123,069

 

 

 

 

 

 

3.66

%

 

$

2,904,498

 

 

 

 

 

 

3.95

%

Net interest income

 

 

 

$

71,877

 

 

 

 

 

 

 

 

$

55,750

 

 

 

 

Net interest rate spread (6)

 

 

 

 

 

 

 

2.39

%

 

 

 

 

 

 

 

 

1.77

%

Net interest-earning assets (7)

$

652,823

 

 

 

 

 

 

 

 

$

633,016

 

 

 

 

 

 

 

Net interest margin (8)

 

 

 

 

 

 

 

3.18

%

 

 

 

 

 

 

 

 

2.66

%

Average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest-bearing liabilities

 

 

 

 

 

 

 

127.58

%

 

 

 

 

 

 

 

 

129.24

%

 

(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)
For the nine months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.7 million, were reclassified to Savings.
(6)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)
Net interest margin represents net interest income divided by average total interest-earning assets.

 

14

 

Ponce Financial Group, Inc. and Subsidiaries

Other Data

 

 

As of

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2025

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issued

 

24,886,711

 

 

 

24,886,711

 

 

 

24,886,711

 

 

 

24,886,711

 

 

 

24,886,711

 

Less treasury shares

 

885,586

 

 

 

901,911

 

 

 

920,520

 

 

 

925,497

 

 

 

1,067,248

 

Common shares outstanding at end of period

 

24,001,125

 

 

 

23,984,800

 

 

 

23,966,191

 

 

 

23,961,214

 

 

 

23,819,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

12.70

 

 

$

12.34

 

 

$

12.05

 

 

$

11.71

 

 

$

11.74

 

Tangible book value per common share

$

12.70

 

 

$

12.34

 

 

$

12.05

 

 

$

11.71

 

 

$

11.74

 

 

 

 

15
EX-99.2 3 pdlb-ex99_2.htm EX-99.2

Slide 1

President & Chief Executive Officer Carlos P. Naudon Executive Vice President & Chief Financial Officer Sergio J. Vaccaro Exhibit 99.2 Presentation of

Slide 2

Cautionary Statements Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.’s market area; Ponce Bank, N.A.’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation. Forward Looking Statements The market and industry data used throughout this presentation is based, in part, on third-party sources, as indicated. Although management believes these third-party sources are reliable, they have not independently verified the information and cannot guarantee its accuracy and completeness. Market and Industry Data Copyright © 2025. All Right Reserved

Slide 3

Corporate Headquarters and Office Location Branch Locations On October 10, 2025, the Company wholly-owned subsidiary, Ponce Bank (formerly a federally chartered stock savings association), has completed its previously announced conversion to a national bank and commenced operations as Ponce Bank, National Association (the “Bank”).  In connection with the conversion of the Bank, the Company also commenced operations as a bank holding company as of the same date.  Further, the Company also became a financial holding company, which is an additional election that allows the Company to engage in activities that are financial in nature or incidental to a financial activity. Aim to provide long-term value to stakeholders by executing a safe and sound business strategy that produces increasing value. Number of full-time equivalent employees as of September 30, 2025, was 209 equating to $15.1 million in assets per employee. The Company provides a full range of financial services in a community-focused manner. Ticker NASDAQ: PDLB Established 1960 Headquarters Bronx, NY Branches 13 full-service branches and 5 loan production/representative offices Total Assets $3.16 billion (as of 9/30/25) Total Loans $2.49 billion (as of 9/30/25) Total Deposits $2.06 billion (as of 9/30/25) Earnings Per Share (Basic) $0.27 (for three months ended 9/30/25) Market Cap TBV Per Common Share* $353 million (as of 9/30/25) $12.70 (as of 9/30/25) Copyright © 2025. All Right Reserved (*) TBV Per Common Share is a Non-GAAP financial measure. Non-GAAP financial measures are not a substitute for GAAP financial measures. See the appendix of this presentation for a reconciliation to the most directly comparable GAAP financial measure.

Slide 4

Franchise Evolution 2015 - 2022 Carlos P. Naudon named President in 2015; CEO in 2018 Certified SBA lender Continued to remain focused on residential and commercial real estate Optimized real estate footprint by improving loan efficiency Certification as an MDI & CDFI Grew assets from $700 million to $2.3 billion Path to Conversion 2022 - Present Converted from Mutual Holding Company on January 27, 2022 The company becoming a bank holding company and a financial holding company The Bank becoming a national bank Established a robust capital base to continue executing on strategic initiatives Continued focusing on residential and commercial lending with an emphasis on technological integration Received low-cost funding Preferred Stock in the amount of $225 million from the ECIP Public Ownership 1960 - 2015 Established 65-year-old institution focused on residential and nonresidential lending Headquartered in the Bronx, NY with branch presence in the Bronx, Brooklyn, Queens, New Jersey, and Manhattan Grew assets from de novo to $700 million Mutual Bank Copyright © 2025. All Right Reserved

Slide 5

PFG Executive Management Executive Chairmanof the Board Steven A. Tsavaris Executive Vice President and Chief Lending Officer Ioannis Kouzilos Madeline V. Marquez President and Chief Executive Officer Carlos P. Naudon Executive Vice President and Chief Financial Officer Sergio J. Vaccaro Executive Vice President and Chief Operating Officer Luis G. Gonzalez Jr. Copyright © 2025. All Right Reserved 50+ years of experience Former President and CEO of Ponce De Leon Federal Savings Bank Former Chairman and CEO of PDLB Community Bancorp 13+ years of experience Previously VP of Credit Administration Experienced at various financial institutions 25+ years of experience Former Vice President at Business Initiative Corporation of New York Former Managing Director at Brooklyn Economic Development Corp. 50+ years of experience Former CEO of Banking Spectrum Inc. Former Acting CEO and Director of Open Solutions, Inc., a public company 25+ years of experience Former CFO of Private Bank Americas at HSBC Former CFO of Home Loans at Morgan Stanley Former US Head of FP&A at HSBC 17+ years of experience Former Bank Examiner Former Acting Assistant Deputy Comptroller, OCC Executive Vice President and Chief External Affairs Officer Senior Vice President Director of Human Resources Melissa DeLeon 9+ years of experience Former Vice President of Human Resources Experienced in Retail Banking Senior Vice President Director of Community Banking Betty Campiz 15+ years of experience Former Senior Vice President of Digital Banking Experienced in Digital Banking and CX

Slide 6

Highlights – nine months ended September 30, 2025 and 2024 Strong loan growth. Net loans receivable were $2.49 billion as of September 30, 2025, an increase of $309.7 million, or 14.2%, from September 30, 2024. Higher NIM and stable expenses YoY. Net interest margin at 3.18% for nine months ended September 30, 2025, an increase of 0.52% from prior period. The non-interest expenses were $50.4 million for nine months ended September 30, 2025, an increase of $0.4 million from September 30, 2024. Strong deposit growth. Deposits were $2.06 billion as of September 30, 2025, an increase of $179.0 million, or 9.5%, from September 30, 2024. Increasing profitability. Net income available to common stockholders of $17.7 million, or $0.77 per diluted share for nine months ended September 30, 2025. Copyright © 2025. All Right Reserved Six Month Highlight Overview YTD 2025 YTD 2024 Change % Net interest income $71.9M $55.8M 28.9% Net income available to common stockholders $17.7M $7.7M 130.7% Deposits $2.06B $1.88B 9.5% Net loans receivable $2.49B $2.18B 14.2% Earnings per diluted share $0.77 $0.34 126.5%

Slide 7

Our Vision Growing alongside fastest growing, best clients Reaching Capital Deployment Capabilities Qualify for ECIP disposition Grow core deposits, with an emphasis on cross-selling commercial customers, growing Ponce Direct, mission driven and specialty deposits Grow our loan portfolio and continue to enhance our participation capabilities Increase our utilization of technology Increase profitability and continue to manage expenses Robust capital position, inclusive of $225 million in ECIP funds provided by the U.S. Treasury Focused on growing loan book: Expanding CRE & Non-Residential Loans Stay with successful clients as they grow Low-Cost, Excess Capital - Ready to Deploy The Bank is designated as both a Community Development Financial Institution (CDFI) and a Minority Deposit Institution (MDI) MDI and CDFI Status; Mission Driven Business Model Aligns with ESG Completed the second-step in January 2022 Ability to return capital to shareholders – priorities De-Mutualization Opportunity The Company is well-positioned with a weighted average loan-to-value ratio of 51.9% as of September 30, 2025 Total CRE Loans comprise 366.6% of Tier 1 Capital plus allowance Financial Strength Strategies and Focus Growth Drivers Accelerating Loan Growth Through Deployment of Excess Capital CRE and Residential Markets – Single Family & Multi-family markets Net Interest Income Growth Upgrading electronic infrastructure Expanding digital banking services Creating greater resiliency, capacity, and redundancies Modernization Program Across Company Infrastructure Restructure/Refocus the retail business model Upgrade sales force Attract, develop and retain an engaged workforce Ensure risk management and controls are aligned with strategic priorities Manage credit risk to maintain a low level of nonperforming assets. Copyright © 2025. All Right Reserved 68% 91%

Slide 8

ECIP Disposition – Executed Agreement On December 20, 2024, PFG entered into an ECIP securities purchase option agreement with the US Department of the Treasury, allowing repurchase at a future date, subject to compliance with certain qualifications Determination of sale price: based on the dividend discount model While there can be no assurance as to the final repurchase price, the price could be as low as 6.70% under the current guidelines, (assuming a dividend rate of 0.50%, RFR of 4.71% (20 Yr Treasury as of 9/30/25), Beta of 0.50 and ERP of 5.50% and satisfaction of the deep impact condition) Impact of ~8.75 $ per share, under the above assumptions, $225 million ECIP, 24.0 million common shares outstanding The repurchase date could occur as soon as 3Q 2026, assuming satisfaction of the necessary conditions Status on progress: Have achieved 13 consecutive quarters with an 81% rate of deep impact lending (vs 60% requirement for 16 consecutive quarters to qualify for repurchase); strong level of originations from April 1st, 2025 to September 30th, 2025 ensure that our dividend yield will continue at the 0.50% level in the rest dividend period starting in 2026.

Slide 9

Community Development Financial Institution The CDFI Program offers both Financial Assistance and Technical Assistance awards to CDFIs. These competitive awards support and enhance the ability of the Company to meet the needs of the communities they serve. Financial Assistance awards are made in the form of loans, grants, equity investments, and deposits, which CDFIs are required to match dollar-for-dollar with non-federal funds. This requirement enables the Company to multiply the impact of federal investment to meet the demand for affordable financial products in economically distressed communities. Technical Assistance grants are offered to CDFIs and Certifiable CDFIs to build their organizational capacity. Out of the 20 top CDFI Banks (in Total Assets): in housing focus in DLI-HMDA (% of housing lending in LMI communities) in total assets in total loans As a CDFI, the Company has received over $5 million in federal grants As of September 30, 2024, there were approximately 1,400 CDFI’s operating nationwide, but fewer than 200 are banks, and the Bank ranks amongst the largest The CDFI designation qualifies the Company for grants and capital opportunities such as the Emergency Capital Investment Program (ECIP), which the Company benefitted from in the form of a $225 million investment from the U.S. Treasury for Senior Non-Cumulative Perpetual Preferred Stock; only CDFIs and MDIs were able to participate in this program – it comes at no cost (to capital) for the first two years and includes rate reduction incentives after that with a cap of 2.00% Ponce Bank has won awards and mandates for community development and ranks as one of the largest and most housing focused CDFIs in the country. Rankings as of 3rd quarter 2024 3rd 6th Copyright © 2025. All Right Reserved

Slide 10

Minority Depository Institution One of 32 banks in the country designated as both an MDI and a CDFI. As of December 31, 2024, the FDIC recognized 151 MDIs across the United States and its territories, with collective assets of approximately $366 billion. As an MDI the Bank can provide financial services to and for underserved communities as designated by the federal government including African, Asian, Hispanic, and Native Americans. MDI designation allows the Bank to provide many benefits to low-to-moderate income communities, including access to credit, values-driven banking, international languages and locations, financial education, and community-specific services. Out of all the MDI Banks in Assets, the Bank ranks: Rankings as of 4Q24 The Bank is designated an MDI, classified under the Federal Deposit Insurance Corporation (FDIC). The FDIC defines an MDI as a federally insured depository institution for which (1) 51% or more of the voting stock is owned by minority individuals; or (2) majority of the board of directors is a minority and the community that the institution serves is predominantly minority. in total assets New York in total assets out of 151 MDIs 3rd 22nd Copyright © 2025. All Right Reserved

Slide 11

ESG (Environmental, Social, Governance) Environmental Initiatives The Company focuses on sustainability, resource conservation, and waste reduction. We ensure regulatory compliance, vendor adherence, and invest in technology for efficiency. Our ESG Committee manages site compliance and flood risk, while we work with suppliers to uphold ethical practices. We mirror our community with 61% female and 86% ethnically diverse employees. Community Reflection We support communities with initiatives and partnerships. Community We value employees, offer competitive benefits, and invest in growth through training. Health, Safety and Talent Acquisition & Retention In the latest report(*) from the National Community Investment Fund, Ponce ranked: among the 20 largest CDFI Banks with a Housing Focus in Assets, Lending and Deposits #3 Data Security Compliance & Ethics Suppliers Corporate Governance We are dedicated to sustainability and building a strong ESG foundation. We prioritize accountability, ethical practices, and robust risk management to earn stakeholder trust and ensure legal compliance. in total loans among all CDFI banks nationwide (194 total) #6 in total Assets among all CDFI banks nationwide #6 We boost office efficiency with high-efficiency equipment, LED lighting, and advanced HVAC units. We promote recycling and waste separation in our offices. We consult energy experts for inspections, savings, and rebates on ESG-friendly upgrades. Copyright © 2025. All Right Reserved Environmental Responsibility Social Impact Environmental Initiatives (*) Latest report published December 2024 for 3rd quarter 2024

Slide 12

Appendix

Slide 13

Total Assets Total Deposits Balance Sheet Highlights (in thousands) Copyright © 2025. All Right Reserved Net Loans Loans-to-Deposits %

Slide 14

Appx. 1 Portfolio Composition 17.7% 35.3% 17.3% 27.4% 1-4 Family Residential Construction and Land Multifamily Residential Nonresidential Property $ 2,286,599 $ 2,490,046 $ 1,322,098 $ 1,525,668 $ 1,895,886 Loan Portfolio Growth (in thousands) Net Loans Receivable Loans Portfolio Copyright © 2025. All Right Reserved As of September 30, 2025 Other

Slide 15

Total Securities - as of September 30, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: U.S. Government Bonds $2,998 $- $(43) $2,955 Corporate Bonds 14,752 - (857) 13,895 Mortgage-Backed Securities: Collateralized Mortgage Obligations¹ 31,686 - (4,888) 26,798 FHLMC Certificates 8,192 - (890) 7,302 FNMA Certificates 51,840 - (8,051) 43,789 GNMA Certificates 81 2 - 83 Total available-for-sale securities $109,549 $2 $(14,729) $94,822 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-Maturity Securities: Corporate Bonds $7,500 $35 $(230) $7,305 Mortgage-Backed Securities: Collateralized Mortgage Obligations¹ 167,024 90 (3,516) 163,598 FHLMC Certificates 3,156 5 (132) 3,029 FNMA Certificates 94,729 5 (1,792) 92,942 SBA Certificates 12,944 34 - 12,978 Allowance for Credit Losses (228) - - - Total available-for-sale securities $285,125 $169 $(5,670) $279,852 (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. (in thousand) Copyright © 2025. All Right Reserved (in thousand)

Slide 16

Actual Amount Ratio For Capital Adequacy Purposes Amount Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio September 30, 2025 (in thousands) Ponce Financial Group, Inc. Total Capital to Risk-Weighted Assets $ 568,651 24.08% $ 188,932 8.00% $ 236,165 10.00% Tier 1 Capital to Risk-Weighted Assets 541,306 22.92% 141,699 6.00% 188,932 8.00% Common Equity Tier 1 Capital Ratio 316,306 13.39% 106,274 4.50% 153,507 6.50% Tier 1 Capital to Total Assets 541,306 17.33% 124,923 4.00% 156,154 5.00% Ponce Bank Total Capital to Risk-Weighted Assets $ 531,580 21.79% $ 195,207 8.00% $ 244,008 10.00% Tier 1 Capital to Risk-Weighted Assets 504,235 20.66% 146,405 6.00% 195,207 8.00% Common Equity Tier 1 Capital Ratio 504,235 20.66% 109,804 4.50% 158,605 6.50% Tier 1 Capital to Total Assets 504,235 16.08% 125,467 4.00% 156,833 5.00% Actual Amount Ratio For Capital Adequacy Purposes Amount Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio December 31, 2024 (in thousands) Ponce Financial Group, Inc. Total Capital to Risk-Weighted Assets $ 546,128 22.98% $ 190,147 8.00% $ 237,684 10.00% Tier 1 Capital to Risk-Weighted Assets 520,796 21.91% 142,611 6.00% 190,147 8.00% Common Equity Tier 1 Capital Ratio 295,796 12.44% 106,958 4.50% 154,495 6.50% Tier 1 Capital to Total Assets 520,796 17.70% 117,715 4.00% 147,144 5.00% Ponce Bank Total Capital to Risk-Weighted Assets $ 507,632 21.47% $ 189,137 8.00% $ 236,421 10.00% Tier 1 Capital to Risk-Weighted Assets 482,300 20.40% 141,853 6.00% 189,137 8.00% Common Equity Tier 1 Capital Ratio 482,300 20.40% 106,390 4.50% 153,674 6.50% Tier 1 Capital to Total Assets 482,300 15.81% 122,011 4.00% 152,514 5.00% Copyright © 2025. All Right Reserved Regulatory Capital Ratios

Slide 17

Reconciliation to GAAP September 30, 2025 Common shares issued 24,886,711 Less treasury shares 885,586 Common shares outstanding at end of period 24,001,125 Total Equity $ 529,835,252 Common shares outstanding 24,001,125 Total equity per share - GAAP $ 22.08 Total Equity $ 529,835,252 Less Preferred Stock $ (225,000,000) Tangible book value $ 304,835,252 Tangible book value per common share -Non-GAAP $ 12.70

Slide 18

Community Sponsorships and Donations Includes Sponsorships and Donations by the Company and the Ponce De Leon Foundation Queens Small Business Owners & Entrepreneurs Small Business Bootcamp Over 117 grants to charitable causes since 2017 $2.3 million was given to Ponce Bank Branch communities focusing on youth services, education, healthcare, social services, economic development, and cultural diversity Ponce De Leon Foundation Financial Mastery Workshops Copyright © 2025. All Right Reserved American Cancer Society Morris Heights Health Center Urban Youth Alliance Int Castle Hill Little League Iglesia Nuevo Amanecer La Hermosa Phipps Neighborhood InHisName United YMCA of Greater NY Washington Heights BID Unique People Services Hostos Community College Foundation New Bronx Chamber of Commerce Bronx Manhattan North Board of Realtors Bronx Kings Business Initiative Corporation Neighborhood Shop COVID Relief Program BOEDC Bronx Tourism Council NYS CDFI Coalition Bronx County Bar Association Business Initiative Corporation Bronx Overall Economic Development Corp Unique People Services Hope Gathering Buy Local East Harlem & Greet Union Settlement LSA Covid Relief Citivas La Fortaleza Hope Community AHRC Society of the Educational Arts NYCHCC Women In Business Upper Manhattan Mental Health Center Riverdale Senior Services Urban Design Forum Comite Noviembre RAICES Spanish Speaking Elderly Council One Brooklyn Fund MyTime Inc Brooklyn Hospital Foundation Gay Men's Health Crisis Inc CommonPoint Queens Immaculate Conception Catholic Academy Hellenic Orthodox Community of Astoria Greater Jamaica Development Corp Queens Economic Development Corporation Immaculate Conception Catholic Academy Pancyprian Association Inc NJ Law Enforcement Queens Women's Chamber of Commerce Union City Music Project NJ Small Business Development Center at NJCU Forest Hills Chambers of Commerce Greater NY Chamber of Commerce Sharing and Caring Inc NYSCDFI Coalition Brooklyn Kings County Chamber Of Commerce of Washington Heights and Inwood in Manhattan & MANY MORE Save Latin America Hispanic Chamber of Commerce BNI Down to Business

Slide 19

NASDAQ: PDLB Thank you.